The Dirty Secret of Pricing Luxury Goods in China

4/25/2013 2:16AM

Makers of luxury goods have found a way to add to their profits: Charge Chinese consumers more than their counterparts in the U.S. and Europe. The WSJ’s Wei Gu tells Deborah Kan why luxury cars and fashion brands are more expensive in China.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... more Chinese tourists going abroad to purchase the luxe tree gets well now they may have more reason to do so ... left rebrand may be charging more in China ... Cheney me now is column this week ... as a gateway so ... how can companies really get away with doing this ... well it has been than a transparent about that and be a foolish thing these people said a troubling ... that kind of a cabal rant about how much they owe was outside in a Sonata seem ... did he see the Chinese Internet space ... is for things like ala the same bad which is more sixty ... s and one spends at the time at assisting France so it's getting becoming less small indulgence now IPO which companies in particular to we know are doing this and and and in you mention in at the bag as sixty percent differential a is it is not commonplace it's pretty across the board it's pretty much go one any you have the lecture a commie has ... which haven't even fewer me says because now these cars confused in China ... even so the economy in the Blain input says which a lot of lecturing at companies do ... but say if there may be time to help calm and then people who make will be in China because this post be cheaper ... I was wonder when I was reading and history has been a out how much longer can companies really um get away with this considering the more more Chinese are really going abroad ... to becoming more savvy to until what the price differential is ending ... could this potentially really hurt China's retail industry should sit ... down the luxury side of the ... reason of the bailout won't do any more content that is because swelling the Poste ... China prices got it from such a high base ... for Take calm when example Penney is a cow which women didn't have its own auto industry so the cost of buying from a prolific MPW PL what taxes have very high so people are used to having a calling and that can be no more cars ... costing something like the well for the Southern U S Thomas so coming from such a high pace and also demand has been a really high in China ... so just five years ago to get a BMW in time that people actually have to pay extra if they want it to to get a deal with being a few weeks ... so I'm cases and apply to Hong Kong has as we know a lot of mainland Chinese cross the border into Hong Kong ... to shop in Atlanta especially let let's response to this is their price different different in that ... aam ... is not cheap any more but still cheap and ain't I know ... the cheapest to buy what the friends and floral by the U S banding honk on ... the problem Hongkong as demand is so high ... and now so that's driving up rents so the costs of the trade that ... Qiang cocoa is actually higher now ... I get to the FIFA in to get to parents on you better do a lot of shopping to make you wear that to make it for the plane to give a fine for them attitudes with ample be than this gets a lot that's why we see the unbound by so with the impact of ... that date they say meds we do for more on ways commenting added Avista dot com and ever con ...